THE BOURSE WHISPERER: Consolidated Zinc (ASX: CZL) announced it has entered into a Binding Term Sheet with Retec Guaru S.A. de C.V.
Under the terms of the agreement, Consolidated Zinc will acquire the remaining 10 per cent interest, currently held by Retec, in the company’s 90 per cent-owned subsidiary Minera Latin American Zinc S.A.P.I de C.V. aka MLAZ.
MLAZ owns the Plomosas Mine, located 120 kilometres from Chihuahua City, Chihuahua State,
The price attached to the acquisition of the Retec interest in MLAZ is a one per cent Net Smelter Return Royalty from the sale of zinc and lead concentrates produced from Plomosas.
Consolidated Zinc indicated it expects cmpletion of the agreement for the acquisition by 30 September 2019.
“The acquisition of a 100 per cent interest in Plomosas completes the simplification of the ownership structure from the company’s original 51 per cent shareholding less than nine months ago, with the acquisitions of the additional 49 per cent interests acquired at attractive considerations to add shareholder value,” Consolidated Zinc managing director Brad Marwood said in the company’s announcement to the Australian Securities Exchange.